Only lawyers licensed in the Spanish bar association can take care of your claim in Spain.

TIMESHARE SCAMS

Before Starting a Claim

There are many timeshares reclaim companies; some professional and competent and others that are not. Before deciding to start a lawsuit, it is advisable to take measures to avoid any unpleasant surprises. Do not sign anything or advance any monies if you are unsure of the legitimacy of the Timeshare claim company. 

What to do before starting a claim?

What to do before starting a claim?

1.- Make sure your contract is reclaimable.

If it is not clear that your contract violates any of the clauses contemplated in the Law 42/1998, then do not claim.

If you do not have sufficient documents to prove advanced payments or other legal situations to argue in the lawsuit, then do not claim. If you do, the consequence will be that the judge will dismiss your claim and make you liable for the costs of the opposing party, in addition to losing any monies already paid in initiating the claim.

To avoid this unpleasant situation, our recommendation would be, before making payment of any kind, to ask the firm that is going to file your claim for a report signed by their lawyers where they indicate:

a) The clause or lack thereof in your contract that breaches the requirements contemplated in the law 42/1998

b) What legal argument will be expressed in the claim requesting the annulment of your contract and the return of the money paid.

2.- Make sure that whoever is going to take your case is a Spanish law firm, or a lawyer licensed in Spain.

Only lawyers licensed in the Spanish bar association can take care of your claim in Spain. Many non Spanish companies offer legal services to file your claim in Spain, but the fact is that if a firm does not have a license in the country where the lawsuit will be filed, they cannot take your case forward. Moreover, it is a crime of professional interference with the law association and a scam for the client they intend to represent.

3.-Make sure that the company to be claimed against still exists, or that there is a legal link between its managers and other active companies.

In the timeshare sector, it is commonplace that the company that sold you your week/s no longer exists. It can be the case that assets are liquidated and sold, or that they have changed their registered address and management of the resort is conducted by a subsidiary company. Sometimes they are acquired, merged or absorbed by other companies in the sector. In such cases, you can be unpleasantly surprised at court and the case be dismissed because the company you are claiming against no longer exists.

We work with the most advanced legal software on the market here at TRC and so you can be sure that we investigate, explore and examine all the corporate networks that are established and or connected to the company against whom we will be claiming.

4.-Make sure that the company to claim against has sufficient assets

Make sure that the company you wish to claim against has enough assets so that you can get your money back. If the company you wish to claim against does not have enough assets, you will have lost your money, plus the expenses paid to start the claim.

At TRC we have updated balance sheets and income accounts of practically all the timeshare companies that operate in Spain.  If we do not see possibilities that you will recover your money, we will not accept your case.

5.-Do not make any payments until you have received a draft of the “power of attorney” document.

Do not pay any monies until you have received a draft of the “power of attorney” document, with the name and license number of the lawyer who will be filing your claim.

In addition to it being “an essential document” in Spain to present a claim, it would serve in case, as evidence that the firm you have hired does not comply with the agreement. No credible Spanish lawyer would risk losing their license due to work negligence.

6.-Ask for a copy of the legal document “admission to process”

If after some time you suspect that your claim has not been presented, request a copy of the “acceptance for processing” of your claim.

The acceptance process is a legal document issued by the court where the lawsuit is filed, and which states that the process has begun.

1.- Make sure your contract is reclaimable.

2.- Make sure that whoever is going to take your case is a Spanish law firm, or a lawyer licensed in Spain.

3.-Make sure that the company to be claimed against still exists, or that there is a legal link between its managers and other active companies.

4.-Make sure that the company to claim against has sufficient assets

5.-Do not make any payments until you have received a draft of the “power of attorney” document.

6.-Ask for a copy of the legal document “admission to process”

Most common bad practices

a) No Win No Fee

The expenses incurred by any company in our sector are the fees for lawyers, attorneys and also the structural costs. The money you advance covers the cost of processing the demand, the infrastructure and personnel necessary to provide the service. Once the claim is successful and money is recovered, this is where we as a company obtain our benefit. That is why it is rare that a company is able to offer this option.

What usually happens is that after initially being offered “no advance payment” some form of upfront payment is then requested later, accompanied by sophitisticated and credible excuses and so we would recommend not to proceed with any company who initially offers this service then changes their pledges further down the line.

b) You can get double your purchase price plus double the deposit paid.

False. You can claim a refund of the purchase price and for double of any payment made before the cooling off period lapsed.

c) Appeals not included in the management contract

Read the service contract well and make sure that it includes “all the steps” necessary to fight your case until the end; that is, up to the highest court possible. In some cases, the claim cannot be resolved in the first instance thus making it is necessary to appeal to the high or supreme court. You may be surprised that several months after signing and having made payment, they ask for more money to continue with the case. Read the service contract very well; If you need clarification on this point, please feel free to send us a copy via this link and we will happily offer you some advice at absolutely no cost.

d) Insolvent companies or companies with a registered office in an offshore tax territory

Many Timeshare companies have their headquarters located in tax havens, with subsidiary companies operating in Spain only as a screen. In these cases, the chances of getting your money back are slim, if at all. So it is very important to make certain of the economic viability of the company that you are going to claim against before starting a claim, or ask your chosen law firm for a copy of the financial accounts of that company before making a decision to proceed. 

e) Initial payments higher than 20%

The initial fees for filing a lawsuit in Spain range between 10% -20% of the claim amount. Do not make any advance payments higher than this percentage.

f) Demands not filed

Request the notification of “Acceptance Pending” of your demand if you suspect that it has not been processed.

Download our anti-scam timeshare reclaim guide here , with examples of: Legal report for your contracts, Spanish lawyer´s license, General power for attorney, Certificate of admission to processing of the claim an more.. It is important to avoid unnecessary risks.

FAQs & Step by Step

After the final court case is sentenced, the funds can take a further 4 to 6 months to be collected.

During the whole process you will receive constant information on the progress of your claim.

During the whole process all of the fees such as maintenance fees etc… must be paid and you will still have the use of your weeks.

The court case can take anywhere between 15 to 24 months in the 1st instance.

Copies of your original contracts with the resort

Copy of Passports with Apostille of all the owners of the weeks

A Power of Attorney that can be prepared in Spain or in your home country ( document provided by TRC)

Detailed explanation of the entire process of your claim

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